Digest: American Express to cut 5,400 jobs

In this undated handout from OfficeMax Inc., Sam Duncan, chairman and chief executive of the company poses for a photograph. On Tuesday, Jan. 10, 2006, OfficeMax, the nation's No. 3 office supplies retailer, said it will shut down 110 of its approximately 950 U.S. retail stores in the first quarter as part of a restructuring aimed at strengthening its business. Duncan called the closings "a difficult but necessary step toward improving our company's overall performance." (AP Photo/OfficeMax Inc.)

Photo: HO

NEW YORK - American Express Co. says it will slash about 8.5 per- cent of its employees, 5,400 jobs, mainly in its travel business, and book a $287 million restructuring charge. As a result, the credit card company projects that it will report a decline in 46 percent drop in fourth-quarter in adjusted net income from a year ago.

Retail: Supervalu selling 5 of its grocery chains

Supervalu is selling off five of its grocery chains, including Albertson's and Jewel-Osco, after years of being squeezed by intensifying competition.

The nation's No. 3 traditional supermarket operator after Kroger and Safeway said Thursday that the sale of 877 stores to an investor group led by Cerberus Capital Management will also include Acme, Shaw's and Star Market.

Following the sale, Eden Prairie, Minn.-based Supervalu will focus on its Save-A-Lot discount stores, as well as its smaller regional chains Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's.

Sam Duncan, the former chairman and CEO of OfficeMax, will become CEO of Supervalu.

Health: Two providers of rehab services are merging

Austin Recovery, which specializes in residential drug and alcohol treatment, has merged with the Council on Alcohol and Drugs Houston, a provider of outpatient treatment.

They are two of the state's largest nonprofit providers of rehab services. Officials said operations in both cities will continue under existing names. Services will be added in the coming year, and operations could be combined under one brand in the future.

Mel Taylor, president and CEO of the Houston organization, was named CEO of both and will stay in Houston. Joel Ferguson, a Houston executive, is now based in Austin as chief operating officer.

In other news

Mortgage buyer Freddie Mac said the average rate on the 30-year fixed rate mortgage loan increased to 3.40 per- cent from 3.34 percent. The average 15-year fixed mortgage rose to 2.66 percent from 2.64 percent.

The Treasury Department auctioned $32 billion in three-month bills at 0.065 percent, down from 0.075 percent. And $28 billion in six-month bills went at 0.105 percent, down from 0.120 percent. The Federal Reserve said the average yield for one-year Treasury bills fell to 0.15 percent from 0.16 percent.